LG Chem [051910:KS], one of the largest South Korean chemical companies, has signed a contract with GS EPS [LGEZ:KS], a power plant constructor and operator of the South Korean GS Group [078930:KS], to jointly build a biomass power plant worth KRW320bn (USD248m), as reported by the Korea Economic Daily on December 20. The two companies will construct the biomass plant, Yeosu Green Power, to produce high-pressure steam which causes a series of turbine blades to rotate and generate electricity. The new power plant will use waste wood supplied by GS EPS’ domestic woodchip supply network as its biomass fuel source. The commercial operation of Yeosu Green Power will begin in the first half of 2026. LG Chem and GS EPS hope that the new power plant could help to accelerate South Korea’s green transition.
The biomass power plant burns plant-based material to produce heat or electricity. The most common types of biomass fuels are woody fuels, forestry residues, mill residues, and agricultural residues. Although burning biomass also generates greenhouse gas emissions and pollutants, because of its renewable nature, biomass is considered a carbon-neutral source of energy. Once operation begins, the Yeosu Green Power plant is expected to reduce carbon dioxide emissions by 400,000 tons annually.